Saturday March 23, 2019
Home Lead Story Tesla Founder...

Tesla Founder Elon Musk Sued For Fraud

The company has been struggling to achieve the ambitious production targets that Musk had publicly outlined.

0
//
Elon Musk, CEO of SpaceX. Wikimedia.

The Securities and Exchange Commission (S.E.C.) has filed a lawsuit accusing Tesla Inc. founder Elon Musk of committing fraud by making false public statements with the potential to hurt investors, a move that could force him out of the companys leadership.

The lawsuit filed on Thursday in a federal court here seeks to bar Musk from serving as an executive or director of publicly traded companies like Tesla, reports The New York Times.

Such a punishment is one of the most serious remedies the S.E.C. can impose against a corporate executive.

At issue is Musk’s declaration on Twitter last month that he had “funding secured” to buy out the stock of the electric-car maker.

The prospect created a firestorm on social media and in the markets that sent Tesla’s shares soaring.

tesla
Tesla has become the most valuable American carmaker, with its stock worth more than $50 billion. Pixabay

 

The case could lead to a re-evaluation of how companies use Twitter to communicate with the investing public.

The S.E.C. said Musk “knew or was reckless in not knowing” that his statements were false or misleading.

“In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source,” it said in its lawsuit.

Musk responded later on Thursday, calling the move “unjustified”.

“This unjustified action by the S.E.C. leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way,” the billionaire businessman said in a statement.

Tesla CEO
According to Musk, “two thirds” of Tesla’s current stockholders would be interested in continuing to hold the firm’s shares once it goes private. (VOA)

The S.E.C. approached the Tesla chief with an offer to settle the case, an informed source told The New York Times, but he refused to negotiate, adamant that he had done nothing wrong.

Tesla has become the most valuable American carmaker, with its stock worth more than $50 billion.

But the company’s shares tumbled more than 12 per cent in after-hours trading after the S.E.C. filed its lawsuit.

The lawsuit is the latest in a series of escalating problems for Tesla and Musk.

Also Read: Elon Musk Maybe Sued For ‘Paedo’ Remark

The company has been struggling to achieve the ambitious production targets that Musk had publicly outlined.

He has made a series of unusual public comments or appearances, including an internet interview in which Musk appeared to smoke marijuana. (IANS)

Next Story

Intel and Cray Collaborate With U.S. Government, Aims for Nation’s Fastest Computer

The world's current most powerful machine, the Summit supercomputer at Oak Ridge National Laboratory in Tennessee, contains chips from International Business Machines Corp. and Nvidia.

0
Intel
This Jan. 1, 2018, file photo shows an Intel logo on the box containing an HP desktop computer on sale at a Costco in Pittsburgh. VOA

A U.S. government-led group is working with chipmaker Intel and Cray to develop and build the nation’s fastest computer by 2021 for conducting nuclear weapons and other research, officials said Monday.

The Department of Energy and the Argonne National Laboratory near Chicago said they were working on a supercomputer dubbed Aurora with Intel, the world’s biggest supplier of data center chips, and Cray, which specializes in the ultra-fast machines.

The $500 million contract for the project calls on the companies to deliver a computer with so-called exaflop performance — that is, being able to perform 1 quintillion (1,000,000,000,000,000,000) calculations per second.

Computer
It also heightens the stakes in a race in which the United States, China, the European Union and Japan have all announced plans to build exaflop-capable supercomputers. VOA

If the project succeeds, Aurora would represent nearly an order of magnitude leap over existing machines that feature so-called petaflop performance, capable of doing 1 quadrillion (1,000,000,000,000,000) calculations a second.

It also heightens the stakes in a race in which the United States, China, the European Union and Japan have all announced plans to build exaflop-capable supercomputers.

One of Aurora’s primary functions would be simulating nuclear blasts, a pillar of weapons development since the ban of live detonation testings.

Aurora will be built with artificial intelligence capabilities for projects such as developing better battery materials and helping the Department of Veterans Affairs prevent suicides, Rick Stevens, an associate lab director with Argonne overseeing the exascale computing project, said during a news
briefing.

The project is a win for Intel, which will supply its Xeon CPU chips and Optane memory chips for Aurora.

FILE - The Nvidia booth is shown at the E3 2017 Electronic Entertainment Expo in Los Angeles, June 13, 2017.
The Nvidia booth is shown at the E3 2017 Electronic Entertainment Expo in Los Angeles, June 13, 2017. VOA

Intel has been fending off rival U.S. chipmaker Nvidia Corp.’s rise in the chip content of supercomputers as the machines take on more artificial intelligence work. Nvidia’s chips are found in five of the world’s current top 10 supercomputers, though the Nvidia chips are found alongside chips from its rivals, according to TOP500, which ranks the machines.

The world’s current most powerful machine, the Summit supercomputer at Oak Ridge National Laboratory in Tennessee, contains chips from International Business Machines Corp. and Nvidia.

The source of chips for supercomputers has become a factor in trade tensions between the United States and China. The world’s third-fastest supercomputer — the Sunway TaihuLight in China — has chips developed domestically in China.

Also Read: U.S. Tariffs on China Could Remain Same, Even After Reaching The Trade Deal

Chirag Dekate, an analyst with Gartner who studies the supercomputing market, said that despite the small contract size relative to Intel’s overall revenue, the work done on Aurora will eventually filter down to the company’s commercial customers.

“It’s not just a jingoistic race between the U.S. and China,” Dekate said. “The innovations that Intel is developing here will percolate down to other parts of its business.” (VOA)